Common use of Premature Distributions Clause in Contracts

Premature Distributions. Although you may elect to take distributions from your account at any time, if you are under age 59½ and receive a nonqualified ▇▇▇▇ ▇▇▇ distribution, an additional tax of 10 % will generally apply to the amount includible in income in the year of the distribution. If you are under age 59½ and receive a distribution of conversion amounts within the five‐year period beginning with the year in which the conversion occurred, an additional tax of 10% will generally apply to the amount of the distribution. The additional tax of 10% will generally not apply if a distribution is made on account of 1) you are totally and permanently disabled, 2) the timely withdrawal of an excess contribution, 3) a series of substantially equal periodic payments (at least annual payments) made over your life expectancy or the joint life expectancy of you and your beneficiary, 4) medical expenses which exceed 7.5% of your adjusted gross income, 5) paying medical insurance premiums during a period of unemployment, 6) certain qualified education expenses, 7) you use the distribution to buy, build, or rebuild a first home, 8) a levy issued by the IRS, 9) the distribution is a qualified reservist distribution, or 10) you are the beneficiary of a deceased IRA owner.

Premature Distributions. Although you may elect to take distributions from your account at any time, if you are under age 59½ and receive a nonqualified ▇▇▇▇ ▇▇▇ distribution, an additional tax of 10 % will generally apply to the amount includible in income in the year of the distribution. If you are under age 59½ and receive a distribution of conversion amounts within the five‐year five-year period beginning with the year in which the conversion occurred, an additional tax of 10% will generally apply to the amount of the distribution. The additional tax of 10% will generally not apply if a distribution is made on account of 1) you are totally and permanently disabled, 2) the timely withdrawal of an excess contribution, 3) a series of substantially equal periodic payments (at least annual payments) made over your life expectancy or the joint life expectancy of you and your beneficiary, 4) medical expenses which exceed 7.5% of your adjusted gross income, 5) paying medical insurance premiums during a period of unemployment, 6) certain qualified education expenses, 7) you use the distribution to buy, build, or rebuild a first home, 8) a levy issued by the IRS, 9) the distribution is a qualified reservist distribution, or 10) you are the beneficiary of a deceased IRA ▇▇▇ owner.